A controversial bid to convert a 17th century Shropshire hotel into apartments has been dismissed by planning chiefs.

The Planning Inspectorate has ruled developers cannot transform the grade II-listed Charlton Arms in Wellington, which has been closed since August 2006, into 42 luxury flats.

A government inspector was called in to rule on the scheme after the firm behind the development, appealed.

Nextdom appealed against Telford & Wrekin Council’s refusal, saying Wellington could not afford to lose the hotel.

Jeremy Sargent, the inspector, today backed the council decision.

Councillor Gary Davies, a borough council and Wellington Town Council member, said: “This is fantastic news for the area.

“All along I have fought this with others and made it clear there is room in Wellington for the Charlton Arms as a hotel and function enterprise.”

Councillor Davies said he now wanted to see the venue transformed back to its former glory.

“I now hope the owners realise it is an invaluable enterprise to run in the town and, after being closed for many years, I would now ask them to think about running it as the Charlton Arms again,” he said.

“If not, I would call on them to sell it on to new owners who will run it as the Charlton Arms again, a venue much loved by everybody in the Wellington area and further afield.”

Nextdom wanted to demolish modern extensions to the premises and convert the original listed building into 11 flats, with a further 31 flats on the car park, but the local planning authority, rejected the plans last year.

At the appeal in July, Mr Sargent heard the Charlton Arms had provided four services, as a hotel, bar, function room and restaurant.

The appeal heard Aoife O’Brien, the building’s owner, had invested substantially in the property,  spending £82,000, but she had been unable to make the business pay.

A boiler room fire caused by an electrical fault in 2006, which caused smoke damage to several bedrooms, was seen as an opportunity to draw a line under the enterprise, leading to the development plan from Miss O’Brien’s family’s firm Nextdom.

Nextdom was unavailable for comment.

By Andrew Morris